[et_pb_section bb_built=”1″ admin_label=”Header – All Pages” transparent_background=”off” background_color=”#1e73be” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”||0px|” next_background_color=”#ffffff” custom_padding_tablet=”50px|0|50px|0″ custom_padding_last_edited=”on|desktop” global_module=”1221″][et_pb_row admin_label=”row” global_parent=”1221″ background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_post_title global_parent=”1221″ title=”on” meta=”off” author=”on” date=”on” categories=”on” comments=”on” featured_image=”off” featured_placement=”below” parallax_effect=”on” parallax_method=”on” text_orientation=”left” text_color=”light” text_background=”off” text_bg_color=”rgba(255,255,255,0.9)” module_bg_color=”rgba(255,255,255,0)” title_all_caps=”off” use_border_color=”off” border_color=”#ffffff” border_style=”solid” title_font=”|on|||” title_font_size=”35″ custom_padding=”10px|||” parallax=”on” background_color=”rgba(255,255,255,0)” /][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” custom_padding=”0px||0px|” padding_mobile=”on” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ prev_background_color=”#1e73be” next_background_color=”#ffffff” custom_padding_tablet=”0px||0px|” global_module=”1228″][et_pb_row global_parent=”1228″ make_fullwidth=”off” use_custom_width=”off” width_unit=”on” use_custom_gutter=”off” gutter_width=”3″ custom_padding=”0px||0px|” padding_mobile=”off” allow_player_pause=”off” parallax=”off” parallax_method=”off” make_equal=”off” parallax_1=”off” parallax_method_1=”off” column_padding_mobile=”on” background_position=”top_left” background_repeat=”repeat” background_size=”initial”][et_pb_column type=”4_4″][et_pb_text global_parent=”1228″ background_layout=”light” text_orientation=”left” text_font_size=”14″ use_border_color=”off” border_color=”#ffffff” border_style=”solid” background_position=”top_left” background_repeat=”repeat” background_size=”initial”]

[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section bb_built=”1″ fullwidth=”off” specialty=”off” transparent_background=”off” allow_player_pause=”off” inner_shadow=”off” parallax=”off” parallax_method=”off” padding_mobile=”off” make_fullwidth=”off” use_custom_width=”off” width_unit=”on” make_equal=”off” use_custom_gutter=”off” gutter_width=”3″ custom_padding_tablet=”0px||0px|” custom_padding_last_edited=”on|desktop” prev_background_color=”#ffffff” next_background_color=”#000000″][et_pb_row][et_pb_column type=”4_4″][et_pb_toggle admin_label=”Index” _builder_version=”3.0.106″ title=”Index” open=”off”]

Contents

5.1 Scope of this section.

5.2 Small companies – exemptions.

5.2.1 Extract from FRS102: Section 5.1A.

5.2.2 OmniPro comment

5.3 Presentation of total comprehensive income.

5.3.1 Extract from FRS102: Section 5.2-5.3.

5.3.2 OmniPro comment

5.3.2.1 Choices available.

5.3.2.2 Implications of changing between the two layouts.

5.4 Single-statement approach.

5.4.1 Extract from FRS102: Section 5.5-5.6, Section 5.7D and Section 5.9.

5.4.2 OmniPro comment

5.4.2.1 Overview.

5.4.2.2 The formats.

5.4.2.2.1 Profit and loss account/income statement.

5.4.2.2.2 Other comprehensive income.

5.4.2.3 Practical application of format 1 showing the single statement approach for group.

5.4.2.3.1 Practical application of single statement approach for an individual entity.

5.5 Two-statement approach.

5.5.1 Extract from FRS102: Section 5.7-5.7D and Section 5.9.

5.5.2 OmniPro comment

5.5.2.1 Overview.

5.5.2.2 Formats.

5.5.2.2.1 Profit and loss account/income statement formats.

5.5.2.2.2 Other comprehensive income – statement of comprehensive income.

5.5.2.3 Practical application of the two statement approach showing format 1.

5.5.2.3.1 Two statement approach for a Group.

5.5.2.3.2 Two statement approach for an individual entity (i.e. not group accounts).

5.6 Alternative profit and loss format.

5.6.1 Extract from FRS102: Section 5.7B-5.7C.

5.6.2 OmniPro comment

5.6.2.1 Overview.

5.6.2.2 Example of alternative basis for the statements of comprehensive income – One statement approach.

5.7 Discontinued operations.

5.7.1 Extract from FRS102: Section 5.7E-5.7F.

5.7.2 OmniPro comment

5.7.2.1 Discontinued operation and when it is to be considered to be discontinued.

5.7.2.2 Disclosure requirements for discontinued operations.

5.8 Prior year/period adjustments.

5.8.1 Extract from FRS102: Section 5.8.

5.8.2 OmniPro comment

5.9 Exceptional items and extraordinary items.

5.9.1 Extract from FRS102: Section 5.9A and Section 5.10-5.10B.

5.9.2 OmniPro comment

5.9.2.1 Exceptional items.

5.9.2.1.1 Exceptional items defined.

5.9.2.1.2 Examples of exceptional items.

5.9.2.1.3 Assessing whether to disclose exceptional item in notes or on the face of income statement.

5.9.2.1.4 Disclosure requirements of exceptional items in the notes.

5.9.2.1.5 Illustration of disclosure of exceptional items.

5.9.2.1.5.1 Exceptional items shown on face of profit and loss account.

5.9.2.1.5.2 Exceptional items shown in notes and not of the face of profit and loss account.

5.9.2.1.5.3 Exceptional itekm accounting policy disclosure.

5.9.2.2 Extraordinary items.

5.10 Operating profit.

5.10.1 Extract from FRS102: Section 5.9B.

5.10.2 OmniPro comment

5.11 Analysis of expenses.

5.11.1 Extract from FRS102: Section 5.11.

5.11.2 OmniPro comment

5.11.2.1 Overview.

5.11.2.2 Analysis by function of expense.

5.11.2.2.1 Format 1 of Companies Act 2006 – for UK entities.

5.11.2.2.2 Format 1 Companies Act 2014 – for Republic of Ireland entities.

5.11.2.3 Analysis by nature of expense.

5.11.2.3.1 Format 2 of Companies Act 2006 – for UK entities.

5.11.2.3.2 Format 2 of Companies Act 2014 for Republic of Ireland entities.

5.12 Exemption from preparing a profit and loss account when consolidated financial statements are prepared.

5.12.1 OmniPro comment

5.12.1.1 Overview.

5.12.1.2 For UK Parent Company.

5.12.1.3 For Republic of Ireland Parent Company.

[/et_pb_toggle][/et_pb_column][/et_pb_row][et_pb_row][et_pb_column type=”3_4″][et_pb_text admin_label=”Main Body Text” background_layout=”light” text_orientation=”justified” use_border_color=”off” border_color_all=”off” module_alignment=”left” _builder_version=”3.0.106″]

5.10 Operating profit
5.10.1 Extract from FRS102: Section 5.9B

5.9B  This FRS does not require disclosure of ‘operating profit’. However, if an entity elects to disclose the results of operating activities the entity should ensure that the amount disclosed is representative of activities that would normally be regarded as ‘operating’. For example, it would be inappropriate to exclude items clearly related to operations (such as inventory write-downs and restructuring and relocation expenses) because they occur irregularly or infrequently or are unusual in amount. Similarly, it would be inappropriate to exclude items on the grounds that they do not involve cash flows, such as depreciation and amortisation expenses.

5.10.2 OmniPro comment

Sections 5.9B of FRS 102 does not require disclosure of operating profit so if this is included an entity should ensure that all operating expense and income type items are included within that operating profit and that no non-operating expenses are included within the operating profit.

[/et_pb_text][/et_pb_column][et_pb_column type=”1_4″][et_pb_toggle _builder_version=”3.0.106″ title=”Practical Examples” open=”off”]

Examples

Example 1: Example of Single statement approach for a Group.

Example 2: Example of Single statement approach for an individual entity (i.e. not group accounts).

Example 3: Two statement approach for a Group.

Example 3(a): Two statement approach for an individual entity (i.e. not group accounts).

Example 4: Consolidated Statement of Comprehensive/Income statement approach – Alternative Approach.

Example 5: Discontinued operations not ceased.

Example 6: Exceptional item disclosure note for an accounting policy.

Example 7: See below the extract from format 1 of the Companies Act 2006 for the UK.

Example 8: See below the extract from format 1 of the Companies Act 2014 for the Republic of Ireland.

Example 9: See below the extract from format 2 of the Companies Act 2006 for the UK.

Example 10: See below the extract from format 2 of the Companies Act 2014 for the Republic of Ireland.

[/et_pb_toggle][/et_pb_column][/et_pb_row][/et_pb_section]